Discount rate for evaluating all projects


Question: If a company uses the same discount rate for evaluating all projects, which of the following results is likely?

a. Accepting poor, high risk projects.

b. Rejecting good, low risk projects

c. Accepting only good, low risk projects.

d. Accepting no projects

e. Statements a and b are correct.

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Finance Basics: Discount rate for evaluating all projects
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